Cipla fell 4 percent while Vedanta and Axis Bank were down 3 percent each. L&T lost 2.5 percent. ONGC, TCS, Maruti, Tata Motors and ITC were major gainers in the Sensex.

3:10 pm Banks to incur more cost: India's banks could see their lending-related costs rise by up to a fifth as a recent rule change means they must make bigger provisions for restructured debt, crimping their profits at a time when consumers and firms are starting to borrow more.

This could make banks cautious about lending, hurting an economy that is emerging from its weakest growth since the 1980s. The stricter provisioning norms may also affect the recovery chances of troubled borrowers as more loans are classified as bad instead of attempts to restructure them.

The Reserve Bank of India (RBI) ended last month what it called a period of "forbearance", dating back to the financial crisis. During this time, problematic loans that were being restructured required provisions amounting to only 5 percent of their value, instead of 15 percent for the loans classified as "bad".

2:50 pm Market check: The market has slipped further after Infosys announced lower-than-expected March quarter results. The Sensex is down 310.70 points or 1 percent at 27424.32 and the Nifty is down 102.65 points or 1 percent at 8295.65. About 657 shares have advanced, 2014 shares declined, and 146 shares are unchanged.

Infosys is down over 5 percent while Cipla, Vedanta, HDFC and Hindalco are top losers. ITC is still down 2 percent, followed by ONGC, Maruti, Tata Motors and Bajaj Auto.

Cipla fell 4 percent while Vedanta and Axis Bank were down 3 percent each. L&T lost 2.5 percent. ONGC, TCS, Maruti, Tata Motors and ITC were major gainers in the Sensex.

3:10 pm Banks to incur more cost: India's banks could see their lending-related costs rise by up to a fifth as a recent rule change means they must make bigger provisions for restructured debt, crimping their profits at a time when consumers and firms are starting to borrow more.

This could make banks cautious about lending, hurting an economy that is emerging from its weakest growth since the 1980s. The stricter provisioning norms may also affect the recovery chances of troubled borrowers as more loans are classified as bad instead of attempts to restructure them.

The Reserve Bank of India (RBI) ended last month what it called a period of "forbearance", dating back to the financial crisis. During this time, problematic loans that were being restructured required provisions amounting to only 5 percent of their value, instead of 15 percent for the loans classified as "bad".

2:50 pm Market check: The market has slipped further after Infosys announced lower-than-expected March quarter results. The Sensex is down 310.70 points or 1 percent at 27424.32 and the Nifty is down 102.65 points or 1 percent at 8295.65. About 657 shares have advanced, 2014 shares declined, and 146 shares are unchanged.

Infosys is down over 5 percent while Cipla, Vedanta, HDFC and Hindalco are top losers. ITC is still down 2 percent, followed by ONGC, Maruti, Tata Motors and Bajaj Auto.

1:30 pm Market outlook: Market expert, Girish Pai of Nirmal Bang Institutional Equities expects Sensex earnings to pick up in the second half of FY16 and go to 15-20 percent compounded for years after that and market may then move back to 9000 levels. on back of post initiatives taken by the government start bearing fruits. According to him Nifty is likely to trade in a broad range of 8000-9000 and will break the range only once there is visibility on earnings.

So, if one is looking to buy into equities at the current juncture then it should be with a long-term horizon of two years plus unless one buys specific stocks where valuations are interesting, says Pai. On the earnings front, he believes revenue growth for most IT companies would disappoint markets because of structural and cyclical reasons.

The market is still sluggish with most indices in the red. The Sensex is down 148.39 points at 27586.63 and the Nifty is down 53.10 points at 8345.20. About 656 shares have advanced, 1842 shares declined, and 139 shares are unchanged.

TCS, ITC, Maruti, ONGC and Sun Pharma are top gainers in the Sensex. Among the losers are Vedanta (earlier Sesa Sterlite), Cipla, HDFC, HUL and Hindalco.

Meanwhile, Societe Generale raised its price forecasts for crude on expectations of a rebalancing of the global oil market spurred by an imminent decline in US production.The bank increased its 2015 average Brent price forecast by USD 4.33 to USD 59.54 per barrel and its WTI forecast by USD 4.28 to USD 53.62 per barrel.

Crude production in the US has reached a "plateau" and is expected to decline soon, in May, the bank said in a note. "More broadly, because the global rebalancing will take place on the back of US shale oil, it means that the process is finally getting underway and that the markets are responding to the low price environment."

12:30pm SBI on PSL norms: The Reserve Bank of India (RBI) on Thursday revised priority sector lending (PSL) norms, adding new segments such as micro, small and medium enterprise (MSME ), social infrastructure and renewable energy under the ambit of priority sectors, which will come into effect with immediate effect

SBI chairman Arundhati Bhattacharya says the new PSL norms will help banks achieve target in a better way.

She further says that increasing the amount of home loans for PSL is a positive step.

According to her, overall asset quality pressure may ease in near-term.

The Sensex dropped 108.13 points to 27626.89 and the Nifty declined 41.10 points to 8357.20. About 3 shares declined for every share advancing on the Bombay Stock Exchange.

Globally, Asian markets traded mostly lower on profit booking post the recent run up. Uncertainty over a "Grexit" is back on the radar as the Greece prepared for a meeting with the Eurogroup later today.

Cairn recovered from day's lows to trade flat. The company reported a loss of Rs 241 crore, dragged by one offs. Revenues came in slightly above estimates, at Rs 2,677 crore. UBS said Q4 was marked by one offs but valuations are cheap against global peers. The brokerage cut FY16-17 EPS estimates by 12-15 percent.

In important earnings today, index heavyweight Infosys traded flat ahead of it's fourth quarter results. According to a CNBC-TV18 poll, dollar revenue growth may rise 0.3 percent and in constant currency, growth is seen at 2-2.5 percent. FY16 revenue guidance is expected at 9-11 percent in constant currency.

Crompton Greaves declined 2.5 percent as Avantha Holdings proposed to sell its entire stake in consumer electricals business to Advent International for Rs 2,000 crore, which is lower than market expectations.

12:30 pm Results: Siemens's second quarter (January-March) profit after tax is seen rising a whopping 36 percent to Rs 120 crore compared to Rs 88.3 crore in December quarter, according to a CNBC-TV18 poll.

The bottomline may be boosted by strong operating performance but revenue may be muted. Total income from operations is likely to rise 0.2 percent year-on-year to Rs 2,713 crore in the quarter ended March 2014.

The company follows October-September as its financial year.

Flattish revenue growth may be on account of weak traction in large projects in the energy & industrial businesses, and a lower starting order backlog. Client related issues in specific projects could pose the risk of muted execution.

The market continues to be under selling pressure. The Sensex is down 160.82 points or 0.6 percent at 27574.20 and the Nifty is down 59.65 points or 0.7 percent at 8338.65. About 583 shares advanced, 1579 shares declined, and 125 shares are unchanged.

ITC, ONGC, TCS, Sun Pharma and BHEL are top gainers in the Sensex. Among the losers are Hindalco, Cipla, Axis Bank, Vedanta and HDFC.

Oil prices edged down from 2015-highs reached in the previous session, but prices remained on track for weekly gains after renewed air strikes in Yemen stoked concerns on the security of Middle East oil shipments.

Crude prices on both sides of the Atlantic have surged almost USD 10 a barrel this month amid rising tension in the Middle East, while slowing US production growth and signs of stronger global demand have also provided support

The rise in futures prices over the last month shows a growing disconnect between oil producers and Wall Street over when slumping oil prices will recover, with the financial community betting that the oil price cycle may turn more quickly than the industry expects.

About 589 shares have advanced, 1501 shares declined, and 126 shares are unchanged on the BSE.

10:40am Oil Update: Oil prices on Friday edged down from 2015-highs reached in the previous session, but prices remained on track for weekly gains after renewed air strikes in Yemen stoked concerns on the security of Middle East oil shipments.

Crude prices on both sides of the Atlantic have surged almost USD 10 a barrel this month amid rising tension in the Middle East, while slowing US production growth and signs of stronger global demand have also provided support.

Brent crude for June delivery was down 30 cents at USD 64.55 a barrel by 0421 GMT, after settling USD 2.12 higher on Thursday. The benchmark touched its highest since Dec. 10 at USD 65.58 on Thursday.

US crude for June delivery dropped 36 cents to USD 57.38 a barrel, after settling up USD 1.58. The front-month contract hit a 2015-high of USD 58.41 on Thursday and is on course for its sixth straight weekly gain.

10:20am Market Expert: The market sentiment continues to be bearish and it could see further correction, says CK Narayan of Growth Avenues. Narayan expects the Nifty to fall to 8200-8250.

In an interview to CNBC-TV18, Narayan says the market is grabbing onto every bad news that's coming its way and using that as an excuse to fall further.

Furthermore, he advises investors to sell the Bank Nifty on rallies as it is continuing to trail the Nifty.

Narayan says M&M Finance and L&T Finance surprised the market with its Q4 results and both are good stocks to park funds in for the short-term.

9:50 am Market check: The market is trending lower. The Sensex is down 122.70 points at 27612.32 and the Nifty is down 43.90 points at 8354.40. About 539 shares have advanced, 1113 shares declined, and 109 shares are unchanged.

ITC is up 1 percent while ONGC, BHEL, Tata Steel and Hindalco are top gainers in the Sensex. Among the losers are HDFC, Axis Bank, Cipla, M&M and L&T.

9:30 am Poll: Infosys' fourth quarter profit may fall 2.7 percent sequentially to Rs 3,161 crore on weak operational performance and slow growth in revenues, according to a CNBC-TV18 poll. Analysts expect rupee revenue at Rs 13,818 crore during January-March quarter, up 0.15 percent over Rs 13,796 crore in December quarter and dollar revenues growth at USD 2,224 million, up 0.3 percent on sequential basis while constant currency growth is seen at around 2-2.5 percent (against its peers TCS (1.6 percent), HCL Tech (2.7 percent) and Wipro (1.2 percent). Infosys has the lowest exposure to currencies other than USD and generates more than two-third of its revenues in US dollar against 50-55 percent for peers.

The market has opened on a flat note with a negative bias. The Sensex is down 25.38 points at 27709.64 and the Nifty is down 14.10 points at 8384.20. About 404 shares have advanced, 226 shares declined, and 89 shares are unchanged.

Infosys is up 1 percent ahead of announcing its March quarter results. Other gainers are ITC, Tata Motors, Reliance and Tata Steel. Among the losers are HDFC, GAIL, Axis Bank and HUL.

The Indian rupee has opened with marginal gains of 5 paise at 63.27 per dollar against previous day's close of 63.32.The dollar fell against most other major currencies, while the euro rose on waning fears of a Greek default.

Pramit Brahmbhatt of Veracity said, "Local equity market is expected to take cues from global markets for further directions. Strength in dollar will keep rupee under pressure. Asian market has started the day on a mixed note which may force local equity to open weak. Range for the rupee is seen between 62.80-63.80/dollar today."

The rupee on Thursday plummeted to an over three-month low of 63.32 by losing 50 paise against the US dollar on renewed demand for the American currency from banks and importers amid foreign capital outflows in the equity market

Global market cues, meanwhile, are mixed with the US markets closing near highs as investors cheered corporate earnings reports. Europe ended mostly lower as uncertainty over a "Grexit" is back on the radar as it prepares for a meeting with the Eurogroup. And Asian markets are mixed in morning trade.

In commodities, Nymex Crude rose above USD 57 per barrel. Tensions in Yemen heightened concerns about the security of West Asia oil supplies.